Airlines Contracts

Airbus Industrie said it has won commitments from four more airlines to buy the proposed A-3XX super-jumbo, bringing to six the number of carriers ready to buy what would be the world's largest passenger plane. "Progress has been fast," said Airbus Chief Executive Noel Forgeard at a press briefing. "In less than four months, we have obtained letters of intent from Emirates [Airlines], Singapore Airlines and from four customers that will remain undisclosed for a while.

American Airlines Inc. and the Air Line Pilots Assn. announced Thursday that they have tentatively agreed to a 16-year labor contract that guarantees that pilots for the carrier's American Eagle commuter subsidiary will remain among the best paid in the commuter industry, while clearing the way for American to purchase new regional jets.

TWA, Transbrasil Sign Pact: The agreement between Trans World Airlines Inc. and Transbrasil Airlines is to provide new code-sharing service between the United States and Brazil, allowing passengers to travel on both airlines with one ticket. Code-sharing agreements enable separate airlines to share passengers, which effectively expands the number of destinations and connections available to those airlines' customers.

ValuJet canceled all its flights to Dallas and Fort Myers, Fla., because of problems with a charter running the routes. The cancellations affect about 3,000 passengers booked for the six round-trip flights each day from today to Jan. 6. They will get full refunds and a free ticket for another ValuJet flight, the airline said. The Atlanta-based discount carrier announced plans last month to expand service to Dallas and Fort Myers and West Palm Beach, Fla.

American Airlines' recent landmark agreement to buy dozens of Boeing airplanes during the next two decades at preset prices, including 103 planes right away for $6.5 billion, speaks volumes about the true state of the global economy and the outlook for U.S. business. "We laid out our growth plans for the next quarter-century and arranged to acquire planes as we need them," an airline spokesman says. The deal and that statement are astounding.

The Justice Department is investigating a proposed alliance between American Airlines and British Airways to determine whether it could hurt competition, officials said Monday. Department spokesman Bill Brooks confirmed that the agency's antitrust division is reviewing the proposal by British Airways and American to coordinate various services, among them flight schedules, fares and passenger and cargo service.

Hawaiian Airlines Unions Ratify Contract Changes: The move will allow the airline to pursue a $20-million investment offer to continue operating. The 1,200-member International Assn. of Machinists, the 500-member Assn. of Flight Attendants, the 248-member Air Line Pilots Assn. and the 24-member Transport Workers Union were asked to give up raises of about 5% for a chance to buy more stock at reduced prices and to negotiate new raises tied to profits.

Hawaiian Airlines Threatens Bankruptcy Filing: The carrier said it may be forced to seek Chapter 11 protection and halt operations if its unionized employees fail to ratify certain modifications to their contracts. Hawaiian Airlines Inc. said in a statement that the modified contracts are necessary to consummate a pending $20-million financial investment from Airline Investors Partnership. The unions involved are the Air Line Pilots Assn., the Assn. of Flight Attendants, the International Assn.

Boeing Co. received an order for 45 jetliners from Ryanair Holdings, reversing the U.S. plane maker's string of losses against Europe's Airbus Industrie for orders from European carriers. The Irish no-frills carrier said the deal includes orders for 25 737-800 jets, worth about $1.1 billion based on list prices, and options for an additional 20 of the 189-seat jets, which could raise the total order to $2 billion. Initial deliveries will come in March 1999.

Rockwell Collins, a unit of Costa Mesa-based Rockwell International Corp., said Thursday it won a contract from American Airlines Inc. worth an estimated $200 million to serve as the Dallas-based air carrier's main avionics supplier for its fleet of new Boeing planes. The 10-year contract calls for Rockwell Collins to provide avionics systems for the airline's recent order of 75 Boeing 737s and 11 Boeing 777s. The order is part of American's plan to become an all-Boeing fleet in 20 years.

British Airways offered to open new talks with the transport workers union, seeking a truce with 8,500 striking flight attendants while averting a separate confrontation with ground workers. The Transport and General Workers Union handles negotiations for the attendants, who walked out Wednesday in a pay dispute, and 9,000 ground workers, irked by the airline's plans to sell in-flight catering operations. The flight attendants' strike, which ends today, has been costly for British Airways.

American Airlines Inc. and the Air Line Pilots Assn. announced Thursday that they have tentatively agreed to a 16-year labor contract that guarantees that pilots for the carrier's American Eagle commuter subsidiary will remain among the best paid in the commuter industry, while clearing the way for American to purchase new regional jets.

The word "strike" doesn't conjure up such scary images to the flying public anymore. That is the precedent set by President Clinton in ordering American Airlines pilots back to work within minutes after they declared a strike early Saturday, averting chaotic disruptions to hundreds of thousands of passengers.

A pilots' strike threatened against giant American Airlines for next week is only the most prominent example of labor unrest that's rapidly spreading throughout the U.S. airline industry. Aware that the carriers enjoyed record profits last year, unionized workers at several major airlines have either recently rejected new contract offers as inadequate or sternly warned management that they expect hefty wage hikes when their pacts come up for renewal.

Loral Holds On to FAA Contract: The agency agreed to changes that will let Loral Corp. keep the contract to develop and install new computer workstations for the nation's air traffic controllers. The Federal Aviation Administration said the amended contract, valued at about $955 million, will improve safety, cuts costs and flight delays, and equip the nation's air traffic control system to handle a vast expansion in air travel expected over the next decade or so.

ValuJet canceled all its flights to Dallas and Fort Myers, Fla., because of problems with a charter running the routes. The cancellations affect about 3,000 passengers booked for the six round-trip flights each day from today to Jan. 6. They will get full refunds and a free ticket for another ValuJet flight, the airline said. The Atlanta-based discount carrier announced plans last month to expand service to Dallas and Fort Myers and West Palm Beach, Fla.